01 First things first

Product Lifecycle Management (PLM)

Product Lifecycle Management (PLM) is a strategic approach to developing, managing, and improving products from conception to disposal—a way of dealing with the different stages across a product lifecycle. However, it can also be a piece of software (or system) that helps manufacturing organizations and Engineering-to-Order (ETO) companies efficiently work through these different stages.

By blending existing procedures and processes with individual expertise and innovative technology, PLM software like Siemens Teamcenter provides a framework that enhances product quality, reduces costs, and accelerates time to market. Product Lifecycle Management software offers a single platform for all product data and related processes. This single source of truth makes it easier for stakeholders to find the most up-to-date information, allowing them to make the right decisions more quickly and efficiently.

02 The stages of PLM

What, when, and why?

From a manufacturing and ETO perspective, Product Lifecycle Management can be divided into five main stages: Conception, Design and Engineering, Manufacturing, Commissioning, and Decommissioning.

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03 The benefits of PLM

How can PLM help?

The benefits of Product Lifecycle Management for manufacturing aren’t just linked to transparency and timekeeping. Clear protocols facilitated by comprehensive PLM software like Siemens Teamcenter increase the likelihood of creating better-quality products, fewer errors, and greater cost savings thanks to more efficient production processes.

In short, PLM software is crucial for both custom ETO requests and mass-produced products.

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04 The key components of PLM software

Optimizing the PLM value chain

PLM software streamlines the way different manufacturing companies and specific stakeholders can access data. This is done by integrating tools and features to optimize the overall management of a product. Some tools, such as CAD software, are used heavily at specific stages, whereas key components like document management make up the backbone of a PLM system’s overall offering.

Siemens Teamcenter offers a multitude of tools and components that make PLM a no-brainer for manufacturers looking to scale and optimize their business processes without losing track of the original vision for the brand and products.

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05 Picking a PLM implementation partner

Ask yourself the right questions

Picking a PLM partner is the first step to increased efficiency, smoother processes, and better data management. However, to ensure your business's needs are met now and in the future, it's worth considering a few things.

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06 Digital transformation with CLEVR

Product Lifecycle Management in action

Siemens Teamcenter is a comprehensive PLM software suite offering extensive capabilities for managing product data and processes across the entire product lifecycle.

We chose to partner with Siemens because of Teamcenter’s collection of tools and integrations, as well as its overall usability.

Nel Hydrogen recently partnered with CLEVR to significantly enhance its product development capabilities. By leveraging Siemens Teamcenter, CLEVR is implementing a comprehensive PLM solution that streamlines data management and helps automate engineering processes. The collaboration is ongoing, with a view to expanding the scope of this initial project.

Our expertise in digital transformation and PLM is what sets us apart from other solution partners. We combine extensive industry knowledge with digitalization expertise to implement tailor-made Siemens Teamcenter solutions that automate and streamline product lifecycle processes.

Even as your company scales and adapts to new challenges, your processes remain flexible and robust. Let CLEVR guide you through today’s bold decisions for greater peace of mind.

Design and Engineering

This stage includes hands-on tasks that bring a concept to life; detailed product designs, specifications, and prototypes are the name of the game. Tools like CAD systems help designers visualize ideas, enabling engineers to create prototypes.

Quality Assurance and Engineering departments in larger manufacturing organizations use prototypes to ensure a product meets design and performance requirements before mass production. Feedback from testing highlights the refinements needed for validation.

ETO companies often use virtual prototypes, models, and simulations during this stage. Avoiding too many physical iterations helps keep costs low for businesses that can't benefit as much from economies of scale.

Conception

During the ideation phase, competitive analyses help identify market gaps and customers’ unserved needs. This information is used to conceptualize the product, creating a solid foundation for the subsequent PLM stages and decision-making processes.

Automotive manufacturers may, for instance, conduct a competitive analysis to identify gaps in the market for electric trucks, conceptualizing a new model that meets specific urban delivery service needs.

Manufacturing

From a mass manufacturing perspective, this stage starts with a validated, market-ready product resulting from iterative feedback rounds during development. Once the production process is established, it’s time to scale. Planning, executing, and monitoring the scaled production process involves supply chain management and quality control.

ETO companies usually have a single manufacturing process and only one chance to get an order right. Therefore, this stage depends heavily on accurate information from the Design and Engineering, facilitated by efficient PLM software that gets the right information to the right people at the right time.

Commissioning

For mass manufacturers, this stage consists mainly of introducing the product to the market, distribution, sales, and support. Successful product launches require these aspects to be aligned from the start.

In an ETO context, commissioning involves customizing a product's delivery, installation, and support. Successfully deploying bespoke products requires careful logistics coordination, detailed installation procedures, and tailored customer support.

Managing product effectivity—acquiring spare parts and documentation for a specific product version—is also crucial here.

PLM software helps manage these complex processes by providing precise, up-to-date information to all stakeholders. For example, in an ETO machinery project, PLM ensures that engineering details, installation guides, and support documentation are all aligned, allowing for a smooth transition from production to customer site setup and ongoing support.

Decommissioning

Product decommissioning involves Product Managers, Environmental Compliance personnel, and logistics teams. Retirement isn’t just stopping production—effective communication with customers and suppliers is crucial. A tech company may need to plan for disposing of, recycling, or remanufacturing obsolete laptops, ensuring the remaining stock is sold off or used for spare parts. Letting the right people know exactly how these processes should be expected to work is almost as important as the procedures themselves.

For ETO companies, decommissioning involves carefully planning the phase-out of custom products and ensuring clients are supported throughout the process.

Enhanced product quality

PLM software creates a single source of truth for all product data, giving (authorized) departments and stakeholders access to the latest information. This comprehensive data management reduces errors resulting from miscommunication or outdated information.

PLM software also supports extensive testing and validation processes, which helps manufacturers identify issues early in the development cycle.

Reduced time to market

PLM software streamlines a product’s development stage by automating workflows and improving communication among teams. Reducing the time spent on administration speeds up decision-making and helps avoid human errors often caused by repetitive, manual tasks.

Enhanced data management and collaboration also improve the efficiency of the earlier lifecycle stages, which leads to quicker market introductions.

Better data management and collaboration

A centralized PLM system ensures that all product data is easily accessible to those who need it, such as marketers creating assets or campaign messages and after-sales personnel creating training assets for customer support staff. This improves data accuracy and consistency, enabling more informed decision-making. PLM software allows and encourages departments to share information in real time, which reduces information silos and keeps everyone on the same page with the most up-to-date information. 

Cost savings across the product lifecycle

PLM software helps companies avoid inefficient practices that often clog up business processes. This helps reduce costs associated with product development, manufacturing, and maintenance. It also supports better resource management and reduces the need for costly reworks.  

An overview of the production process, including governance and control of automated machinery, lets companies spot material waste and identify ways to optimize production schedules. This reduces manufacturing costs linked to energy consumption and raw materials, which minimizes the environmental impact of a company’s operations. Siemens Teamcenter offers a Carbon Footprint Calculator to help companies assess their decisions as they look to strike a balance between environmental impact, cost reduction, and meeting customer demands. 

Integration and connectivity

Siemens Teamcenter offers extensive integration capabilities with real-time data access for better collaboration. This ensures that all departments and stakeholders across the product lifecycle are on the same page. This is crucial for ETO manufacturers and larger organizations aiming to streamline operations, maintain product quality, and scale effectively.

Good PLM software should seamlessly integrate with various enterprise systems and authoring tools, ensuring cohesive product data management throughout its lifecycle. This means creating a seamless flow of information by connecting Enterprise Resource Planning (ERP) systems, Computer-Aided Design (CAD) tools, and document management software.

Computer-aided design (CAD)

CAD software is essential for creating precise 2D and 3D models, allowing engineers and designers to visualize and iterate on product designs. In PLM, CAD integrates design data with other lifecycle processes, ensuring that all design changes are tracked and managed efficiently. As you’d imagine, CAD software is heavily involved in the conception stage of a product’s lifecycle. So is Product Data Management. 

Product Data Management (PDM)

PDM centralizes all product-related data—which often changes—ensuring accessibility, accuracy, and security. This invariably improves collaboration and decision-making. Within PLM, PDM manages the lifecycle of product data, including version control and access permissions, ensuring that the latest information is available to the right people. 

Bill of Materials (BOM)

A bill of materials (BOM) lists all materials, parts, and assembly configurations required to manufacture a product, which makes it a key feature of the development stage. A BOM represents the product structure in a hierarchical format that clearly presents the relationship between certain components and assemblies. Depending on the product and industry, a BOM can range from a simple, single-level structure to a multi-level structure with specific manufacturing, engineering, and customization guidance.

Like PDM systems, BOM systems track changes. This means that any requested changes to a BOM are documented and sent for approval. A BOM can also include tools to analyze the cost of materials and components. Having an exhaustive and holistic view of the costs will help manufacturers with budgeting forecasts, general cost management, and reporting.

Engineering change management

Engineering Change Management is the tracking, controlling, and approving of changes to product designs and processes. During the development stage, Engineering Change Management helps stakeholders assess the impact of proposed changes on existing designs and processes. It also records modifications, which is vital with the rapid development of a product often containing so many iterations—some of which may need to be revisited for another assessment. 

Computer-Aided Manufacturing (CAM)

CAM software automates manufacturing by converting CAD models into machine instructions, enhancing production precision and efficiency. In PLM software, CAM ensures that manufacturing data is consistent with design data, reducing errors and streamlining the transitions between the design, development, and production stages. 

Supply Chain Management (SCM)

SCM tools are used in the launch and production phase to manage the flow of goods, information, and finances related to a product. In PLM, SCM ensures that supply chain activities are aligned with product development and production schedules, which improves efficiency and reduces costs. 

Document management

This process comprises organizing and managing all documents related to a product’s entire lifecycle. This can include items ranging from compliance records to product brochures. Having the necessary documents in easy-to-find places is key when companies are posed with compliance questions from external regulators. This component is often a feature of the end-of-life phase when companies look to “close the loop” of an existing product, ensuring that it has been produced, distributed, and discontinued in a manner that complies with any number of (changing) regulations.

Compliance and regulatory management

Maintaining a database of the regulations and standards applicable to a product is critical for keeping stakeholders informed on the latest regulatory developments. Sudden changes can result in product non-compliance, which invariably leads to fines and can negatively impact publicity and trust. 

This key component provides the tools to track compliance throughout a product’s lifecycle, which helps generate reports needed for regulatory submissions. Audits can often be lengthy and nerve-wracking for companies. So, having an automated process in place to ensure products meet safety and quality standards can help avoid surprises when regulators are sifting through documentation. 

Do they provide an end-to-end solution?

Ensure the PLM partner you choose will handle the entire product lifecycle. Those that appear only at certain stages and offer support reactively may struggle to produce the most efficient results for your business.

Are they innovative?

It's good to consider how and if your potential PLM partner embraces new technology. Some tried-and-tested methods are all well and good, but partners that embrace the power of low-code with novel PLM systems like Siemens Teamcenter could provide the spark you need to bring your product processes to the next level.

Do they have the right expertise?

Verifying the expertise of those you're considering to partner with is crucial. How experienced are they when it comes to implementing PLM solutions? Do they have the right connections and partnerships with software providers?

Will they be the right fit for your industry?

Look for partners that offer insights into the PLM space and your specific industry.

Like any good PLM system, an implementation partner should be proactive and have an appreciation for moving digital transformation technology forward across all sectors.

Will they provide you with reliable support?

Ensure your PLM partner will offer support at every stage of the implementation process, focusing on the needs of your business with effective solutions that last.

What about the future?

A good PLM implementation partner shouldn't just ensure your solutions and processes work now. Be certain your partner will create a clear, bespoke PLM roadmap that looks years into the future. If they're focused on the here and now without considering the potential twists and turns within your business and industry, you could be in for some nasty surprises.

Related Stories

/Blog

AI Is Moving Fast And The Worst Thing You Can Do Is Nothing

Published on Feb 03, 2026
min read
Blog

Every day when I wake up, I open my laptop, read my emails, and check the news (also the AI news). And every day I see new models, new research papers, and new projects. There's a lot of things happening.

I feel haste. I feel urgency. I have the feeling that I have to do something with this information and also a little bit of FOMO. I see other companies taking actions and I think maybe we should do too.

All this creates a kind of pentup energy that I don’t really know where to put. It makes me feel like I should do something. And like every person in business I fall back on the most familiar reflex when something becomes too big, too fast, or too complex to handle: outsource it, hire help, make it someone else’s problem.

And with AI I think that it's the wrong way to look around about it.

 

Outsourcing AI Thinking Is Dangerous

We see this with many of our clients. They bring in external teams like us to build software, just like they hire plumbers to fix blocked pipes. They don’t train plumbers internally because it’s inefficient, and they don’t stand up full development teams from scratch because it takes enormous time, cost, and organisational effort. In most cases, outsourcing is simply the fastest and least disruptive way to keep the business running.

But the moment you hand it off, you also hand off the learning that comes with it. The thinking, the decisionmaking, the conversations you should be having internally about AI, those end up happening somewhere else, with someone who isn’t living your organisation’s reality.

And that’s the real risk. AI is topic simply too big, and it’s going to change the way we work too deeply, for any organization to outsource the understanding and the learning to an entity outside your own walls.

 

Why AI Is Different From Every "Disruptive" Technology Before

When we talk about technology, we often throw around the word “disruptive,” but AI genuinely earns it. Not because it’s louder or faster, but because it changes where work happens and who can do it. So the question becomes: why is AI different from all the other technologies we once thought would change everything? For me, it comes down to three simple but profound shifts.

 

1. Humans work inside systems, AI works across them

We all work in systems. Whether it’s CRM, email, development tools, ERP (you name it) our daily work happens inside these structured applications. But the real effort, the part no system truly handles, lives between those tools.

Whenever something is too complex or too unstructured to automate, we put humans there. They make judgment calls, chase information, talk to multiple teams, fix issues, and move processes from status A to status B. In practice, people act as the connective tissue that keeps all these systems aligned and moving.

They are the glue between applications, and that’s exactly the space where AI is starting to make an impact.

Those inbetween roles, those loops are now increasingly automatable. Five years ago this simply wasn’t realistic. Today, AI can take over more of that glue work, the work currently done by people, and in the future this will only accelerate.

 

2. AI automates what was previously not automatable

The AI market can be sliced in many ways, but the distinction that works best for me is this:

On one side, you have tools, the more traditional, incremental form of software development. A new feature here, a small improvement there, something that makes a product 5% better or a bit nicer to use. In the AI world, that’s things like translation features, summarisation buttons, or a smart autocomplete that fills in a few fields for you. Useful, but ultimately just extensions of what software has always done.

Then you have agents. And I’ll be honest, I don’t even like the word, because everyone calls everything an “agent” these days, and 9 out of 10 times it isn’t one. Because if you look carefully at what a true agent actually is, it’s something very different.

It's a software system that can take unstructured information, turn it into its own todo list, execute that list (or ask other AIs to do it), move between systems, pull data from your CRM, make decisions, and then produce structured, meaningful output. That’s not a nicer tool. That’s a different category of software entirely.

Because the truth is, our work is really just a bundle of tasks. Some of those tasks are incredibly difficult to automate (like building relationships, reading a room, having dinner with a client if you are a salesperson). Human connection isn’t something AI can replace so those parts of the task bundle are, for now, safe.

But the small, repetitive administrative tasks? Current AI systems can already automate many of these or help you complete them much faster. And everything in between. Those mixed bundles of judgment, admin, and minor decisions, AI will become increasingly capable of handling. And that capability will only continue to grow.

But how will people experience these shifts? How will we guide them through it? How will we make sure this transition strengthens, rather than unsettles, the organization?

 

Navigating the Human Side of an AI-Driven Workflow

Certain tasks will naturally shift from humans to AI, we see that happening little by little everyday. One or two tasks here, a small process there, nothing dramatic at first. The work doesn’t disappear. It simply stops being done by people.

And that’s where the real conversation begins. Because while tasks may move, the people doing them don’t vanish. Their identity, their sense of contribution, and the value they bring to the organisation are tied to that work. So we need to start talking about these things now, openly and honestly.

 

The Financial Pressure

A little while ago, we visited one of our retail clients. In many ways, their organisation was wellstructured: each department ran efficiently within its own vertical, people knew what they were responsible for, and they solved problems quickly. But the moment work had to move between those verticals, everything started to slow down.

They had people manually moving information from one system to another. Typing data into Excel, copying it into Outlook, pulling information back out of Outlook, adjusting formats, fixing small inconsistencies (“this should be five numbers instead of six”), and repeating that process dozens of times a day. None of it was strategic work. All of it was essential work.

And this is the reality for many organisations. These manual gluetasks easily cost €50,000 per person per year. Now imagine an AI system that can do 80% of that work for €500 a year.

What would you do then? What would your customers do? What would any business do if they had a hundred people performing those types of tasks?

This is where the financial motivation becomes impossible to ignore.

 

People Need To Be Part Of The Plan

This is where the human side becomes just as important as the financial one. If you’re not actively planning for how AI and automation will be introduced in your organisation, how people will be trained, how their roles may evolve, and how this new technology will find a place that feels fair and comfortable, then people simply get left out of the story.

Because if the discussion reaches the board without that human context, it turns into a numbersonly decision. On a spreadsheet, €550,000 versus €500 is not a dilemma; it’s a conclusion. And when that comparison involves dozens or hundreds of people, the choice becomes even more obvious.

That’s why it’s essential to build a human plan alongside the financial logic. People need to understand what’s coming, how it affects their work, and what their future looks like in an AIenabled organization. This shift is happening whether we want it or not but how people experience it is still very much in our hands.

 

The First Steps Every Company Should Take

We need to start having real conversations about AI, not because it's trendy, but because the world around us is moving whether we participate or not. Two years ago, for some organisations, “AI” meant buying a chatbot or automating a single workflow. But every day I open my laptop, read the news, or check new research, and the capabilities have grown again. Things we thought were impossible last year are suddenly standard.

Other companies are already acting on this. And if we aren’t even aware of what’s becoming possible, we can’t expect our organization to generate the ideas or innovations we’ll need to stay competitive.

The best ideas always come from people. But only if those people are informed, involved, and part of the conversation.

 

1. Remove the Fear Around Automation

Automation is already happening all around us, and one of the most important things organisations can do is make it a topic people feel safe discussing. It doesn’t have to be a scary word. In many industries (manufacturing is a great example) automation has been evolving for decades. Work that was once done with hammers, chisels, and manual effort is now done by robots, and often done better.

So automation itself isn’t the problem. The real challenge is helping people understand what it means for them. You need a plan for how your organisation will adapt, how roles might evolve, and how people will be supported through that change. When automation is part of an honest, structured conversation, it becomes something you manage, not something you fear. And that brings me to the second point.

 

2. Be Transparent

Transparency becomes critical the moment you start moving toward AI adoption. People need to understand what is happening, why it is happening, and how it will affect the way they work. When organisations stay quiet or vague, uncertainty fills the gaps. And uncertainty quickly turns into fear.

That’s why you need a clear roadmap. Not a perfect one, but one that shows direction, intent, and honesty. Let people see how you’re approaching this project, what decisions are being made, and where they fit into the story.

If we are upfront about the scale of the transformation, people can prepare, contribute, and adapt. But if we keep the process behind closed doors, AI becomes something that “happens to them” rather than something they are part of.

 

3. Enable Organisational Insight

Before you can do any of this successfully, you need a clear understanding of your own organisation. Your processes, your data, your people, and how work actually gets done. This has never been more important, because AI is now capable of automating the kinds of work that were previously considered impossible to automate.

Most companies have beautifully documented process diagrams and welldefined application flows. But everything between those flows, the real daytoday work, the unwritten parts of your job description, the informal steps people take to keep things moving? Those are rarely captured anywhere. And it’s exactly in that unstructured space where AI is beginning to make its impact.

 

Act or Be Acted Upon

Are you going to be the kind of organisation that embraces AI intentionally? One where people are informed, aligned, and understand how the company plans to work with AI as its capabilities grow?

Or will you become the organisation where AI simply “happens” to you? Two years pass, competitors have embraced AI, costs have dropped, efficiency has soared, and suddenly customers are asking why you can’t keep up.

If you reach that point, you no longer have the time or space to create your own framework, your own human story, or your own way of adapting to these changes. You’re forced into action instead of choosing it. And by not acting, by not even beginning the discussion, you’re still making a choice.

You’re choosing to end up in the group where AI happens to you rather than through you. And that is a position no organisation wants to find itself in, yet it is the silent reality many companies are drifting toward.

 

AI Is a Train Already Moving

AI is getting more capable every day, and ignoring it won’t slow it down. It’s a train already in motion, whether we like it or not. The only real question is whether we choose to take control of how it impacts us.

That starts with getting informed, involving more people, and having the conversations that matter. And I genuinely believe we are already taking good steps in that direction at CLEVR. More people are engaged, more discussions are happening, and that’s exactly what we need.

So talk about it. Think about it. Discuss it with your colleagues. The more we share our thoughts and questions, the better prepared we become.

February 3, 2026 9:46 AM
/Blog

How to embed AI responsibly, strategically, and in a way that empowers your workforce

Published on Jan 30, 2026
min read
Blog

AI is a tsunami, it’s coming. The question is not whether you’ll ride the wave, but how well you’ll ride it.

AI is one of the most transformative technologies of our time. It’s revolutionizing industries, unlocking new efficiencies, and driving innovation.

But with great power comes great responsibility. The enthusiasm surrounding AI often comes with concerns about its fairness, transparency, and long-term impact on jobs and society.

The challenge for businesses isn’t just about harnessing AI’s capabilities, it’s about doing so responsibly. Incorporating AI governance, explainability, and compliance is how companies ensure they ride the wave effectively without losing control.

AI Makes Your Job Better: Empowerment, instead of Replacement

One of the biggest misconceptions about AI is that it’s designed to replace people. In reality, AI is about empowerment, it’s about helping people make smarter decisions, faster, and with more insight.

Take OOE dashboards, for example. They give you the data, but what do you do with it? AI doesn’t just deliver information; it turns data into actionable insights, helping people interpret and act on that information.

The real value of AI lies in its ability to amplify human judgment, not replace it. AI supports the human decision-making process by filtering through data, suggesting options, and predicting outcomes, but ultimately, humans remain in the driver’s seat.

Building a Responsible AI-Driven Organization

1. Michael Wade’s Three Core Capabilities for Responsible AI

To successfully navigate AI’s integration into business, leaders must embrace Michael Wade’s three core competencies:

Hyperawareness

AI allows businesses to sit on a goldmine of data. To harness this power, companies must be aware of how and where data flows through their systems. This awareness leads to more informed, proactive decisions.

Information-based decision thinking

AI empowers leaders to move beyond intuition. With data-driven insights, leaders can make decisions that are grounded in reality, not just experience. This thinking is key to unlocking AI’s true potential.

Fast execution

AI helps organizations respond faster to changing market conditions, enhancing agility. It’s about scaling decisions quickly, adapting processes, and innovating at speed, all while keeping the core intact. Fast execution is where human oversight meets AI’s analytical power.

These capabilities form the foundation for responsible AI adoption, but awareness and speed mean little without trust.

2. Establish Explainability to Build Trust in AI

AI works best when people trust it. But trust doesn’t come automatically. If AI decisions aren’t explainable, it’s easy for businesses to lose credibility.

Explainability ensures that everyone involved, from employees to customers, understands how decisions are being made.

In sectors like banking, healthcare, or manufacturing, where decisions directly impact people’s lives, this trust is critical. When this explainability is embraced, AI models become more transparent and understandable. This clarity builds trust, making AI an enabler of responsible innovation, not a black-box risk.

3. Create Strong Governance to Guide AI Use

As AI systems become more integrated into business processes, governance plays a pivotal role. AI is not just a technology to be deployed in isolation; it’s a strategic capability that must be managed and overseen at every level of the organization.

Without strong governance, AI can quickly become a risk rather than an asset. This governance framework ensures that AI is used within ethical boundaries, aligning it with the company’s values and strategic goals.

Leaders must establish clear guidelines on how AI is implemented, who is responsible for decisions, and how it is regulated. By setting up proper governance, businesses can mitigate risks like bias, unethical behavior, and unintended harm.

4. Make AI a Strategic Capability, Not a Technical Project

AI is too important to be treated merely as a technical experiment. For AI to deliver real enterprise value, it must be integrated into the company’s strategic goals.

Too often, AI is treated as a standalone project or a technological trend. Implementing AI without a clear vision for how it aligns with business operations can lead to fragmented deployments.

AI isn’t just about technology; it’s about strategy.

The key to scalable AI adoption is treating AI as a strategic enabler for business transformation. Leaders must ensure that AI aligns with the company’s long-term vision and drives improvements in efficiency, customer satisfaction, and sustainability.

5. Lead the Organization Toward AI Adoption and Trust

The success of any AI initiative depends on leadership. Without strong leadership, AI can quickly become a tool for unintended consequences, such as bias, or loss of control.

It must be ensured that AI is deployed responsibly, as a tool to enhance decision-making, not just efficiency or profit.

Leaders also need to provide the guidance and framework to allow employees to trust AI. This means fostering a culture where AI amplifies human judgment, rather than replacing it. When AI is seen as a tool for empowerment, helping people make better decisions, faster, and more accurately, it becomes a force for positive transformation.

AI doesn’t replace judgment, it amplifies it

AI doesn’t replace human decision-making; it supports and amplifies it. Integrated into business operations, AI doesn’t take over decisions, it provides the context and insight to make them better.

The future of AI lies in collaboration between human intuition and machine learning. As long as the human factor stays in the driver’s seat, organizations can trust AI to enhance, not erode, control.

Ultimately, responsible AI isn’t just about algorithms or compliance, it’s about people trusting technology enough to use it wisely. AI empowers people to act with greater clarity, not less control. That’s the real measure of transformation.

Originally published here.

January 30, 2026 12:57 PM
/Blog

The Clean Core Paradox: How to customize SAP S/4HANA without breaking it

Published on Feb 03, 2026
min read
Blog

SAP S/4HANA is the future, and for most CIOs the pressure is on. Mainstream maintenance for SAP Business Suite systems winds down in 2027, with only limited and increasingly costly options beyond that, making inaction less of a strategy and more postponement with rising risk.

But how do you even begin a SAP S/4HANA migration when you know you are about to let go of years of ABAP customizations, Z‑code, and embedded workflows that keep day-to-day operations running?

SAP is explicit about this. Much of that custom logic cannot move across unchanged. It must be identified, adapted, or removed entirely, leaving CIOs exposed to a parallel challenge alongside the migration itself.

Critical business logic that once lived safely inside the core must be rebuilt elsewhere and rebuilt fast enough to avoid disrupting operations. But where does this logic go, and how do you reintroduce it without recreating the very technical debt S/4HANA is designed to eliminate?

 

The clean core strategy: Why SAP prioritizes scalability and long-term agility

Large enterprise ERP systems tend to accumulate complexity in ways that eventually work against the organization. Over years of customization, business logic becomes deeply embedded in the core through custom code, enhancements, and tightly coupled integrations, making systems harder to upgrade, slower to scale across regions, and more expensive to maintain.

The clean core approach is SAP’s response to this pattern. By keeping the ERP core standard and upgrade stable, organizations gain the ability to adopt new SAP releases more predictably, roll out changes consistently across global operations, and prevent technical debt from compounding over time.

SAP has two extensibility models for this purpose. In‑app extensions that live inside S/4HANA but are not modifying the standard core (best for lightweight changes that stay close to standard processes like BAdIs, Fiori app extensions, or ABAP RAP), and side‑by‑side extensions that live outside S/4HANA, typically on SAP BTP. These are separate applications, workflows, and integrations that communicate with S/4HANA through APIs and events (best for complex business applications, AI/ML services and integrations, multi-system data orchestration, customer portals and mobile apps).

According to SAP, innovation does not disappear in this model. It simply moves to places where it can evolve without putting the stability of the core at risk. But how true is that in practice?

 

SAP extensibility vs. Low code: Choosing the right execution model for business-critical applications

SAP’s direction on extensibility is architecturally sound. By introducing clear extension models SAP enables organizations to keep the S/4HANA core stable while still allowing innovation around it. From a scalability, upgradeability, and long-term agility perspective, this approach makes sense.

However, clearly defining where custom logic should live does not always translate into the speed, sustainability, and predictability required to deliver business‑critical capabilities.

 

Why business-critical extensions increase technical debt in legacy SAP environments

Even when built side by side, native SAP extensions typically rely on traditional development approaches using ABAP, UI5, or CAP. These remain high-code efforts with longer design, build, and test cycles than business timelines allow, that over time can:

  • slow down delivery
  • make costs harder to predict
  • increase dependency on scarce specialist skills
  • add governance and coordination overhead
  • shift CIO focus from innovation to capacity management and long-term maintenance risk

 

How low code helps CIOs reduce technical debt and regain speed, predictability, and control

Low code platforms such as Mendix are designed to operate fully side‑by‑side with SAP S/4HANA, integrating through standard APIs and events while keeping the digital core clean. Instead of treating clean‑core extensibility as a purely technical exercise, low code helps CIOs:

 

1. Restore critical business logic faster 

Visual development models, reusable components, and rapid iteration cycles allow teams to rebuild workflows much faster than traditional high‑code approaches. This helps organizations reintroduce essential business functionality without delaying operations during or after S/4HANA migration.

 

2. Reduce dependency on scarce SAP skills 

Low code changes how delivery teams are structured. Rather than relying exclusively on scarce ABAP, UI5, or CAP expertise, CIOs can form cross‑functional teams that combine business knowledge with IT governance. This expands delivery capacity and reduces risk tied to specialized staffing constraints.

 

3. Enable modular, reusable extensions 

Low code applications are built as composable components that can be reused across processes and business units. This reduces the proliferation of one‑off extensions and supports scalable growth as new requirements emerge, without recreating technical debt outside the core.

 

4. Simplify upgrades through clear separation 

By operating independently of the S/4HANA lifecycle and integrating through released interfaces, low code extensions simplify upgrades and regression testing. At the same time, CIOs retain control by defining clear standards for how extensions are built, owned, and maintained.

 

In this operating model, SAP Business Technology Platform remains the secure and scalable foundation, while low code becomes the execution layer that turns clean ore from a theoretical principle into a practical and repeatable capability. By modularizing business logic outside the S/4HANA core, low code platforms can help CIOs actively manage and prevent technical debt instead of continuously accumulating it through tightly coupled customizations.

 

CLEVR’s Role: From clean core approach to working architecture

Understanding the clean core principle is one thing. Turning it into something that actually works across systems teams and business units is another.

With more than 30 years of experience delivering enterprise‑grade low‑code solutions using Mendix, CLEVR has helped multiple organizations translate clean‑core principles into working, business‑critical applications.

Instead of treating extensions as individual solutions built in isolation, at CLEVR we help define how extensions should be designed, connected to SAP, governed, and maintained over time.

This includes:

  • defining clear architectural patterns aligned with SAP’s clean‑core principles
  • advising on integration strategies using standard APIs and events
  • establishing ownership and governance models across IT and business teams
  • setting development standards that balance speed with control
  • designing lifecycle processes so extensions remain manageable, upgrade‑safe, and predictable as they grow in scope and importance

 

Clean core is only valuable if you can execute it safely

A clean core is not a theoretical goal. For CIOs, it is a promise that business‑critical systems will remain stable, upgradeable, and secure while the organization continues to operate and evolve. But that promise only holds if the logic that keeps the business running can be rebuilt and extended with confidence.

 This is where experience matters. Building side‑by‑side applications for SAP landscapes requires more than tooling. It requires architectural judgment, governance discipline, and a delivery model that works under real business pressure. And with decades of experience delivering enterprise‑grade, business‑critical applications, CLEVR can deliver exactly that.

If you are planning or already navigating an S/4HANA migration and want to extend SAP safely without risking core business operations, our team is ready to help.

Contact CLEVR for a consultation to discuss how to build secure, business‑critical extensions that keep your core clean while your organization continues to move forward with confidence.

February 3, 2026 9:46 AM

Frequently Asked Questions

1

What does PLM stand for?

PLM stands for Product Lifecycle Management.

2

What are the steps in the PLM process?

The PLM process is divided into five main stages: Conception, Design and Engineering, Manufacturing, Commissioning, and Decommissioning.

3

What is a PLM strategy?

A PLM strategy is a strategic approach to developing, managing, and improving products from conception to disposal. It creates a framework that blends existing procedures, individual expertise, and technology to enhance product quality, reduce costs, and accelerate time to market.

4

What is the difference between PLM and PDM?

PDM (Product Data Management) is a key component within the broader PLM system. While PDM focuses specifically on centralizing and managing product-related data (such as version control and access permissions), PLM is the overarching system that manages the entire product lifecycle and all associated processes.

5

What is the difference between ALM and PLM?

The primary difference lies in the nature of the product being managed: PLM is designed for the development of physical products and manufacturing processes, handling everything from initial conception and manufacturing specifications to decommissioning. In contrast, ALM (Application Lifecycle Management) is focused on the development of software applications and digital systems.

While both share core management principles, their applications differ significantly. For example, PLM stages include complex physical requirements like prototyping, mass-production scaling, and environmental decommissioning, whereas ALM focuses on code iterations and software releases. Consequently, PLM requires its own specialized toolset (like Siemens Teamcenter), though agile ALM tools and low-code platforms can be adapted to extend and optimize these PLM processes.

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